Northern Gulf leasing activity began again in 1974 as a result of 

 the federal accelerated OCS leasing program. The Department of Interior 

 scheduled an early lease sale in the northern Gulf because of keen oil 

 industry interest in the area. Another call for nominations was issued 

 by Interior in November 1974 for about 11.8 million acres and petroleum 



• • 2 



companies responded by nominating approximately 7.2 million acres. 



But federal government plans to lease the northern Gulf of Alaska 

 brought storms of protest from environmentalists and the State of Alaska. 

 The state urged postponement of the northern Gulf sale until baseline 

 information was gathered and interpreted, OCS policies were changed to 

 give the State a greater role, provisions were made for sharing OCS 

 revenues, and efforts were taken to reduce the risk of adverse impacts. 

 Governor Hammond made clear the State's intention to go to court to 

 enjoin the Federal leasing program if the northern Gulf sale was not 

 delayed and a Federal commitment given to cure the serious defects of 

 the Alaskan and national OCS programs. 21 Alaska's position was bolstered 

 when the CEQ, EPA and NOAA joined the state in calling for the indefinite 

 postponement of the northern Gulf sale because of the high risk of 



2 2 



environmental damage. 



Secretary Kleppe, nevertheless, after ordering a reduction in 

 leasing acreage from 1.8 million to 1.1 million, decided to hold the 

 lease sale without further delay. 23 Against the background of strenuous 

 state opposition and an unsuccessful state court suit, the Bureau of 

 Land Management leased the northern Gulf on April 13, 1976. 2h A second 

 lease sale is scheduled for May 1979. 



14 



